December 28, 2020 - (Gold Market Wire) - When we penned our "welcome to the new normal" in Gold last week, what we saw was that the market was getting much more violent in nature. Today's action is confirming that.

Quite a roller coaster today, and we'd be ready to bet there is much more of this to come. To the option premium sellers (vol. traders), it's time to cover and get flat or risk/reverse. Vol. is picking up!

We also note that we've maintained to 50-day m.a. so far and have briefly poked our head above the 100-day moving average, albeit intra-day.

The grand finale of the US Presidential election and its tumultuous aftermath is about to commence in earnest. Public confidence in government, in elections in safety and security is ebbing away at an ever increasing rate. This is music to Gold's (bullish) ears. Right now we need to see the down trending line give way properly, but we are starting to get the feeling that the down side may, at last, be coming to an end. Still, let's not rush in, but let the market speak. Right now it's looking impatient to rally, but its a tough call to anticipate the end of a 5-month beat down. The sellers seem to be exhausted, and $1850 is becoming a marker again. We've had only 14 closes below it since the peak in August. But first let's see the 100-day and the downtrend fall first before we start thinking about length.

We are getting closer. The 100-day m.a. and the downtrend line are converging, making that level increasingly important.

‍

‍